The rupee depreciated by 40 paise to settle at 76.46 (provisional) in opposition to the US greenback on Friday, monitoring weak home equities and a strengthening dollar abroad.
Forex merchants stated market sentiment weakened after a possible antiviral drug for coronavirus reportedly failed its first trial.
The rupee opened decrease at 76.30 within the interbank foreign exchange market and declined to as little as 76.47 in the course of the session, earlier than settling at 76.46 for the day.
The rupee had settled at 76.06 in opposition to the US greenback on Thursday.
The greenback index, which gauges the dollar’s energy in opposition to a basket of six currencies, rose 0.31 per cent to 100.74.
Market contributors are involved that the sharp rise in coronavirus instances might weigh on the worldwide in addition to home financial system.
The variety of coronavirus instances world wide has crossed 27 lakh. In India, over 23,000 instances have been reported to this point.
“Any piece of bad news regarding coronavirus, rattles the risky assets including rupee and we see it breaching fresh record lows,” stated Rahul Gupta, head of research-currency at Emkay Global Financial Services.
Mr Gupta additionally stated that “all this while, investors were hoping on flattening coronavirus cases and progress of a vaccine, but now there are doubts in the development of drugs. This uncertainty will continue to fickle the forex market.”